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I'm getting a bit fed up of having no money, ever. I have a £1500 overdraft and £1500 credit card debit. I was thinking of taking out a £3000 loan to pay both of these off (and cancel the credit card altogether once it's paid), repaying about £150/month over 2 years, and extra bits here and there where I can afford it. I'm in work and get a payrise every September so I don't think I'm a big risk where banks are concerned.

Is this a sensible or stupid idea? I'm just SO fed up of being near my overdraft limit every month!

You need to look at the interest rates, it's probably worth it for your credit card, but I'm not sure what your overdraft would be costing you. The benefit of a loan is you have to pay it off, so if you're rubbish at being strict with yourself, it might be a good idea. You'd have to get rid of the overdraft facility and cancel the credit card.

Otherwise you could get an interest free credit card for £3k and transfer both debts to that and then move it after 6 months - however that will ONLY work if you really are good with money. If you did that and paid £150 a month, you'll have cleared it in 20 months with no interest.

The danger of getting more credit to clear old credit is that you just end up doubling your credit facility, and a lot of people don't have the willpower not to spend on it and a downward spiral ensues. Be strict with yourself cause it's irritating later.

getting another credit card to transfer the other balance to but I can't get the same credit limit, so it doesn't seem worth it. The interest on my credit card is an obscene 17.9%, though £500 of my overdraft is still interest free for another year.

I'd definitely be cancelling the credit card as soon as it's paid off - that bit I can at least be sensible with. If I reduced my overdraft to the last £500 I'd put myself in a much cheerier position too.

But should you take advantage of this facility and consequently see your monthly outgoing lessen, you will find you do not have the discipline to appreciate that this is not new money that is yours to spend with impunity.

You will henceforth spend this new money with impunity and end up under a bypass somewhere, cold, alone and without even some acoustic singer-songwriter to approximate your feelings using two chords and some falsetto.

My monthly outgoing won't lessen really. I pay off the minimum on my credit card, hence it not shrinking despite having not used it in forever. It would just be nice to see my wages actually putting my account into credit every month rather than just going to top up my overdraft. I live relatively frugally, all of this debt is a hangover from university.

to an interest free one - lots of them offer 12 months interest free now. Then just do it again in 12 months time. Try to set up a direct debit to pay slightly more than your minimum each month.
However, beware - some charge fees for transferring balances and they can be hefty. Check the new card doesn't first.
In my experience, my overdraft costs me less than a loan would on the same amount. The mistake I made was to keep transferring my rent to my savings to avoid temptation every month - which of course increased the interest I pay on my overdraft.

That was supposed to be the nice version. I was originally just going to type: "You will never escape debt. Debt is the invisible shackles that have bound the common man thoughout the ages. The chains are held by a single entity. This entity has many names: Big Boss Man. The Establishment. The Man. The Lily. The Massa. Whitey. Honky. The Corporation. Mr Big. The Oppressor. Babylon.

I personally prefer Honky. Honky is everywhere - as omnipresent as God - the avatar he created for himself to represent his true nature in an easily digestible form for the masses.

And like God, Honky exists throughout all possible spaces, throughout all possible times. Honky cannot die. And as long as Honky is around, Honky will see to it that you never get out of your debt to him.